Boeing (BA) Stock: Navy and Air Force Award $2.8B in Defense Contracts

TLDR

• Boeing received a U.S. Navy order worth up to $489.3M for the Beowulf upgrade on the EA-18G Growler electronic warfare aircraft.
• The Navy contract includes kits, sensor control units, and power control units, with work finishing by February 2030.
• Boeing was also awarded a $2.34 billion Air Force contract modification for the E-7A Rapid Prototype Airborne Mission Segment.
• The Air Force work spans multiple states and is expected to wrap by Q3 2032.
• Boeing currently holds a Strong Buy rating from 14 analysts, with an average upside of 32% from its March 13 close.

Boeing landed two major defense contracts on March 16, together worth over $2.83 billion. Both deals are tied to U.S. military aircraft programs already in development.

The Boeing Company, BA

The first contract came from the U.S. Navy. It’s worth up to $489.3 million and covers engineering work and test assets for the Beowulf upgrade on the EA-18G Growler — the Navy’s primary electronic attack jet.

The kit breakdown is specific: four Beowulf A-kits, four Gunbay Pallet A-kits, 12 Beowulf B-kits, 15 sensor control unit B-kits, and nine power control unit B-kits. Support equipment is included.

Around $33.99 million in FY26 R&D funding was allocated at the time of the award. The contract runs through February 2030 and is being managed by Naval Air Systems Command.

$2.34 Billion Air Force Modification

The bigger of the two deals is a $2.34 billion option exercise modification to an existing Air Force contract. It covers the E-7A Rapid Prototype Airborne Mission Segment — a radar and battle management system.

Work will be performed across Washington, Oklahoma City, Huntsville, and Heath. Completion is targeted for the third quarter of 2032.

The Department of War published the details in a March 12 press release, with the contract activity confirmed on March 16.

The E-7A is part of a broader U.S. Air Force effort to modernize airborne early warning and command capabilities.

Analyst View

Boeing currently holds a Strong Buy consensus rating based on 14 analyst recommendations. As of March 13, the average price target implies about 32% upside from current levels.

Jefferies analyst Sheila Kahyaoglu reiterated a Buy rating on March 6, keeping a price target of $295. That note came as reports circulated that Boeing is close to a 500-jet commercial order from China, ahead of a planned presidential visit to Beijing.

That commercial angle is separate from Sunday’s defense contract news, but it’s part of the broader picture analysts are watching.

The two defense awards on March 16 add to Boeing’s growing backlog in military programs. Both contracts are with branches of the U.S. armed forces and cover multi-year development and production work.

The Air Force modification, at $2.34 billion, is the larger of the two and extends existing work rather than opening a new program from scratch.

Boeing’s defense division has faced scrutiny in recent years, but contracts of this scale reflect continued reliance on the company for key military platforms.

The Navy’s Beowulf award is tied to a specific electronic warfare upgrade, a niche but strategically relevant capability for the fleet.

Both awards were disclosed publicly on March 16, 2026.

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